HARRISBURG, PA--(Marketwired - July 28, 2016) - Pennsylvania Treasurer Timothy Reese today reminded Pennsylvanians to open a new, or contribute to an existing, Pennsylvania 529 Guaranteed Savings Plan (GSP) account by August 31, 2016 to beat the annual September 1 credit rate increases set by colleges and universities. GSP contributions received on or after September 1 use the higher credit rates.
Enrolling in the PA 529 GSP allows college savings to help keep pace with rising tuition costs. For example, if you save enough for one, ten or even more GSP credits today, you will have enough to pay for that many credits in the future, no matter what the cost of tuition may be at that point.
"With college costs continuing to soar, the PA 529 GSP offers parents and grandparents peace of mind that they can help their children and grandchildren access higher education," Treasurer Reese said. "They know that what they pay for now is what they will receive later, no matter how much tuition may increase."
The PA 529 GSP may be used at most colleges and community colleges, including out-of-state and career schools, with the tuition inflation level determined at the time of withdrawal.
"This is a great program that really helped with paying college expenses for our three children," said William Grassel of Delmont, PA. "The online withdrawal capability that has been added since we started using out saving plan has streamlined the withdrawal process. Everyone with future college student expenses should take advantage of this money saving program. Good work, PA!"
The PA Treasury 529 GSP plan is also offering free enrollment -- a $50 savings -- for all new PA 529 GSP accounts opened online during August at PA529.com. Use code SAVE when prompted. The department is also offering a chance for families to win a $529 college savings account at PA529.com.
Act now. Postmark contributions must be sent via mail by August 31 and online contributions must be completed by 11:59 p.m. EDT on August 31 at PA529.com.
Pennsylvania Treasury also offers a second 529 savings plan, the PA 529 Investment Plan (IP), in which returns are based on financial market performance. The PA 529 IP features low fees and more than a dozen conservative and aggressive investment options from The Vanguard Group, one of the nation's largest financial services companies. Enrollment in the IP is always free. You can open a PA 529 IP account with as little as $25 and make contributions of $25 whenever possible.
Since its inception 23 years ago, more than 88,000 students have benefitted from the PA Treasury Department 529 College Savings Program. In addition, more than 207,000 current and future college students have over $3.8 billion saved for higher education.
PA 529 College Savings Program
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Contributions to both PA 529 plans are deductible from Pennsylvania income taxes, grow tax-free, and, when used for qualified educational expenses, are federal and state tax exempt. Both plans offer flexibility to pay for college expenses at most higher education institutions across the country. Pennsylvanians may deduct contributions from their taxable income up to $14,000 per beneficiary, or up to $28,000 for married couples. Restrictions apply
To learn more about the benefits of PA Treasury's 529 Savings Program, you can view free college savings webinars at PA529.com. The online presentations also allow users to have their questions answered by a PA 529 college savings representative.
For more information, visit PA529.com or call (800) 440-4000 to open or contribute to an account. To read important plan disclosures, visit PA529.com.
The Pennsylvania 529 College Savings Program sponsors two plans -- the PA 529 Guaranteed Savings Plan (GSP) and the PA 529 Investment Plan (IP). The guarantee of the PA 529 Guaranteed Savings Plan is an obligation of the GSP Fund, not the Commonwealth of Pennsylvania or any state agency. Before investing in either plan, please carefully read that plan's disclosure statement (available at www.PA529.com or by calling 800-440-4000) to learn more about that plan, including investment objectives, risks, fees and tax implications.
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